Correlation Between American Airlines and INTEL
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By analyzing existing cross correlation between American Airlines Group and INTEL P 48, you can compare the effects of market volatilities on American Airlines and INTEL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Airlines with a short position of INTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and INTEL.
Diversification Opportunities for American Airlines and INTEL
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and INTEL is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and INTEL P 48 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL P 48 and American Airlines is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Airlines Group are associated (or correlated) with INTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL P 48 has no effect on the direction of American Airlines i.e., American Airlines and INTEL go up and down completely randomly.
Pair Corralation between American Airlines and INTEL
Considering the 90-day investment horizon American Airlines Group is expected to generate 1.95 times more return on investment than INTEL. However, American Airlines is 1.95 times more volatile than INTEL P 48. It trades about 0.09 of its potential returns per unit of risk. INTEL P 48 is currently generating about 0.02 per unit of risk. If you would invest 1,153 in American Airlines Group on September 1, 2024 and sell it today you would earn a total of 299.00 from holding American Airlines Group or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Airlines Group vs. INTEL P 48
Performance |
| Timeline |
| American Airlines |
| INTEL P 48 |
American Airlines and INTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and INTEL
The main advantage of trading using opposite American Airlines and INTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, INTEL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in INTEL will offset losses from the drop in INTEL's long position.| American Airlines vs. Canadian Pacific Railway | American Airlines vs. Werner Enterprises | American Airlines vs. Canadian National Railway | American Airlines vs. CSX Corporation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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